BEAG researchers at the University
of Tennessee completed an economic analysis
for the Governors Ethanol Coalition. The research
team consisted of Daniel De La Torre Ugarte,
Burton C. English, Kim Jensen, Chad Hellwinckel,
Jamey Menard, and Brad Wilson. The study results
indicate that producing 60 billion gallons of
ethanol and 1.6 billion gallons of biodiesel
from renewable resources by the year 2030 is
projected to result in the development of a
new industrial complex with nearly 35 million
acres planted to dedicated energy crops. This
industrial complex is estimated to have an economic
impact in excess of $350 billion within the
U.S., creating 2.4 million additional jobs,
many in Rural America. Not only can U.S. agriculture
meet the nation’s food and feed demand,
but it has sufficient resources to produce significant
quantities of biofuels. Bioenergy allows for
a potential win-win-win scenario for energy
security, agriculture, and rural economic development.
Achievement of 60 billion gallons
of ethanol and 1.6 billion gallons of biodiesel
per year
-
Can be
achieved without using CRP lands,
-
Will be
fostered by research increasing agricultural
productivity and commercialization of cellulosics
to ethanol,
-
Is projected
to result in a cumulative increase in net
farm income over the 2007-2030 period of $210
billion,
-
Is estimated
to impact the nation’s economy by $350
billion and 2.4 million jobs, with much of
these impacts occurring in the nation’s
rural economies,
-
Will provide
for displacement of more than 20% of the gasoline
by 2030; potentially reducing oil imports
by $52 billion, and
-
Can result
in cumulative displacement of 10.48 billion
barrels of oil, and a potential import reduction
of $629 billion through 2030.
A copy of the report can be attained
by either contacting Burton C. English or download
here.
Economic
and Agricultural Impacts of Ethanol and Biodiesel
Expansion
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